An Insider’s Perspective : Change Lessons to Drive your Digital Transformation Process

Recently, we sat down with an experienced digital executive for an insider’s perspective on the fast-paced digital landscape and the digital transformation process. With senior digital and marketing roles at leading Canadian and global companies, she’s been in the front seat for multiple digital transformations.So let’s join her behind the wheel.

Defining Digital Transformation
The first step is for leaders to determine the framework on what be considered a product and what will be considered a project. The resulting framework will create ripple effects on the roles and responsibilities among business, product, and technology teams.

For example, today the business may determine the priorities for the IT development team. In a future product-
focused model, the Product Manager is the translator between the business and IT and will drive prioritization and
decision making.

Harnessing a Product Mindset
Our digital insider further sharpens the definition of digital transformation as the: shift from projects to deliver technology to building products An Insider’s perspective on how to drive your digital transformation

Is your organization set up to drive sustained digital transformation?and platforms that enable the business.

Drawing from her deep marketing expertise, she recommends harnessing the power of a product mindset to effectively drive digital transformation. This includes an increased need for companies to have in-house Product Managers focused on digital products, just as we would for any customer-facing product.
Why embrace a product mindset? The Digital transformation process is a journey, not a one-time destination. As with any product, there’s a need to continually adapt based on competition, expectations of users and the changing digital landscape. Think of your favourite app and how often it’s upgraded and enhanced. The same sustained approach is required with digital transformation at the organizational level. Companies that excel in digital transformation have mechanisms in place, including the right organizational and funding structures, to nimbly change and adapt.

4 vital Elements for a Product Mindset Shift
What’s required for the shift from a project to product mindset? Our digital insider defines four vital elements, each of which requires change management support:

1.Define the Framework and Resulting Organizational Structure
The first step is for leaders to determine the framework on what be considered a product and what will be considered a project. The resulting framework will create ripple effects on the roles and responsibilities among business, product, and technology teams.

For example, today the business may determine the priorities for the IT development team.

2. Set Product Managers up for Success
To be successful, Product Managers need to be:
Empowered to make decisions in the development and delivery of digital products. This often means pushing decision making down to a lower level than in the organization today. With the pace of change and required technical know-how, business leaders will be ineffective if they try to micromanage digital product development and enhancement.
Clear on their role and the role of IT. The role of IT will vary depending on if the initiative is considered a product or a project. With a product approach, Product Managers play a pivotal role as a translator between IT and the business.

3. Measure Value
Typically, measuring a project’s value is straightforward. Finance allocates and controls a budget based on specific deliverables. Running financials for digital products is more complex. You’re often funding teams, not projects, and asking questions like: what’s ongoing content management worth to the organization? A product-focused model can create friction and confusion between the business and Finance. It also pushes those accountable for digital to identify and implement stronger measures that demonstrate capability and value back to the business.

4. Build in-house Capability
Since sustainability is the name of the game, it makes sense to build in-house expertise. Typically, the project model for digital transformation taps into various external vendors. When the project ends, too often the in-depth knowledge and expertise leaves with the external vendors. Operating in product vs project mode can lead to decreased costs over time. There’s more continuity of resources who know and understand the technology. Plus the product manager has built an understanding of end user needs through their role as the translator between IT and the business.

In an upcoming post, we’ll explore the change management pitfalls – and how to manage them – in a product first mindset.

If you are looking for additional support around your digital transformation process, connect with us.